Severe water shortages driven by this year's El Niño weather pattern compelled smelters at the PT Indonesia Morowali Industrial Park (IMIP) on Sulawesi Island to curtail nickel pig iron output.

IMIP’s spokesperson Dedy Kurniawan confirmed that tenant companies received directives to reduce nickel pig iron production levels, though operations continue without facility closures or workforce reductions. Hub management and some tenants are currently adjusting output targets and securing alternative water sources.

As Indonesia's largest nickel-processing center housing more than 50 tenants, IMIP produces nickel pig iron as a primary export input for stainless steel manufacturing.